Puerto Rico in Distress

ABI Analysis

Puerto Rico’s Senate and House approved a bill Tuesday that would slash the central government’s debt by half but has also sparked protests and led to fiery exchanges between lawmakers and a federal control board that oversees the U.S. territory’s finances, the Associated Press reported.

The judge overseeing Puerto Rico’s bankruptcy said confirmation hearings set for November on the territory’s debt restructuring plan will remain in place, even after the island’s Senate last week failed to pass a key piece of legislation needed to finalize the plan, WSJ Pro Bankruptcy reported. Judge Laura Taylor Swain at a virtual hearing yesterday in the U.S.

The judge overseeing Puerto Rico’s record bankruptcy ordered Governor Pedro Pierluisi, the island’s political leaders and its financial oversight board to participate in a conference call on Monday after lawmakers failed to enact legislation to restructure the commonwealth’s debt, Bloomberg News reported.

Puerto Rico’s House of Representatives approved a bill yesterday that allows the commonwealth to issue new bonds to replace existing debt and cut its obligations, a key step that moves the island closer to resolving its record bankruptcy, Bloomberg News reported.

Other Resources

The Financial Oversight and Management Board for Puerto Rico was created under the Puerto Rico Oversight, Management and Economic Stability Act of 2016. The Board consists of seven members appointed by the President of the United States and one ex officio member designated by the Governor of Puerto Rico. Access information on the Board, documents, videos of meetings, calendar of events and live webcasts by clicking here.